Avoiding the Costly Mistakes of C-Suite Hiring

Key Insights 

• More than 50% of execs who inherit a mess fail within 18 months (HBR).

• Underestimating compensation packages can limit access to top talent.  

• Misaligning company vision with talent capabilities leads to costly mismatches. 

• Lengthy hiring processes and poor communication deter “A” level talent.  

• Companies often settle due to search fatigue or pressure, leading to mis-hires.  

Hiring for the C-suite is one of the most critical decisions a company will make. A single executive hire can determine the trajectory of growth, culture, and competitive advantage. Yet too often, organizations stumble through the process—whether by underestimating compensation, misjudging the level of role needed, or simply moving too slowly.  

The stakes are high. According to Harvard Business Review, more than 50% of executives who “inherit a mess” fail within their first 18 months. That’s not just a turnover problem, it’s a direct threat to profitability, investor confidence, and organizational stability. For boards, private equity firms, and leadership teams, avoiding common hiring mistakes isn’t just about saving time, it’s about safeguarding the future of the business.  

At BrainWorks, our team of practice leaders has decades of experience placing transformational executives across industries. Here’s where companies often go wrong, and how to avoid it.  

1. Misjudging Compensation and Market Realities 

One of the first mistakes companies make is underestimating the budget required to attract top talent.  

“When hiring C-suite positions, clients often have a budget that is below market range (salary, budget, and/or potential equity). This can limit our ability to attract and present ‘A’ candidates,” says Bob Carignan, Industrial National Practice Leader. 

The solution? Start with data. Bob recommends utilizing third-party resources such as PayScale to benchmark compensation and allowing flexibility with salary and bonus structures. “This data and flexibility with comp can accelerate the search and hiring process,” he adds.  

2. Failing to Define the True Scope of the Role 

Many organizations mis-hire not because they chose the wrong person, but because they define the wrong role.  

“Companies hire for a VP Sales when they really need a GTM leader. Same with CMOs—they really want a marketing leader but what they really need is a director or VP level. Mis–hiring for the size of the role is generally a problem, and you can go too big or too small,” explains Kelly Maslow, VP and Sales & Marketing National Practice Leader.

Getting clarity on the scope of responsibility, especially in growth-stage companies, prevents costly mismatches.  

3. Overlooking Vision and Alignment 

Hiring isn’t just about skills—it’s about alignment.  

“Some of the most critical items would be aligning the company’s vision with the CXO’s vision. You must be able to align the people and technology—and the challenge is managing all the different stakeholders,” notes Ryan Keller, Technology Staffing National Practice Leader. 

When the executive’s long-term vision doesn’t match the board’s or CEO’s, friction is inevitable.  

4. Dragging Out the Hiring Process

Speed matters. Top talent won’t wait.  

“Having a hiring process that takes too long is a turnoff for A-level talent. Another mistake is not giving feedback and regular communication throughout the process—it’s a quick way to lose the best of the best,” warns Andy Miller, CEO & CPG National Practice Leader. 

Companies must streamline their process and treat candidates with the same urgency and respect they expect in return.  

5. Focusing on the Wrong Qualities 

Too often, boards and leadership teams prioritize the wrong traits in a candidate.  

“Hiring a friend of a friend over the most qualified candidates… searching for a personality trait the board wants to be, hiring based on industry knowledge instead of transferrable skills, ignoring red flags, or making a rushed decision due to fatigue—these are all mistakes we see often,” says Todd Shiner, VP & Accounting & Finance National Practice Leader. 

Another mistake? Failing to make the process a two-way conversion. “Not selling the opportunity, misaligning expectations, or ignoring DEI are all major missteps that can backfire long-term,” he adds.  

6. Ignoring the Intangibles That Drive Success

For many C-suite roles, especially General Counsel, the difference between a good hire and a great hire comes down to three defining qualities:  

“Strategic business acumen, exceptional interpersonal skills, and operational excellence separate successful GCs from the pack,” explains Stephanie Newman, Lateral Partner & In-House Retained Search National Practice Leader. 

Executives who combine business alignment, emotional intelligence, and operational rigor are more likely to thrive and drive meaningful impact.  

C-suite hiring mistakes are expensive—not just in terms of recruitment fees, but in opportunity cost, cultural disruption, and lost momentum. A rushed or misaligned hire can set a company back years.  

That’s why organizations partner with BrainWorks. Our industry-specialized teams understand the nuances of compensation, role scope, and candidate alignment. We move quickly, communicate openly, and help companies avoid the costly pitfalls that derail executive hiring.  

Because at the end of the day, getting the CXO hire right isn’t optional. It’s essential to securing your company’s future.